With City unwilling to meet Shakhtar's £34 million asking price, the 28-year-old Brazil international is said to have sacrificed the bonus payment to allow the Premier League side to pay just £30 million.

ESPN had been informed that City had been looking to pay closer to £20 million, while the Ukrainian club had originally sought more than £42 million.

Shakhtar, meanwhile, have finalised the £6 million signing of midfielder Wellington Nem from Fluminense on a five-year deal.

"I know this club is used to winning and collecting lots of titles," Wellington, 21, told the club's official website. "That was the main reason I came to Donetsk. Besides, lots of Brazilians play here and have a good reputation."